Fusion energy, the process that powers the sun and stars, has long been viewed as the “holy grail” of energy production, with the promise to produce immense amounts of clean energy. The elusive goal is getting closer, with recent breakthroughs achieving reactions which produce more energy than went in to making it and marking a significant step towards commercialization.
This process is known as “breakeven” fusion. Scientists and engineers have made significant developments recently, which serve as major steps in the quest to harness fusion energy. In 2022, the United States (U.S.) Department of Energy (DOE) announced that the National Ignition Facility (NIF) in California produced a fusion reaction resulting in a net energy gain, a feat it has since repeated four times.
In addition to government projects, a commercial fusion industry has also emerged – with investor and customer interest driven by both fusion’s immense potential and significant technical milestones in recent years. Investment in fusion exceeded $7.1 billion as of 2024, and in January 2025, the UK government invested a further £410 million in fusion projects. Among the announced anticipated commercial project technical milestones in the next few years, U.S. company Helion Energy obtained a large broad scope license from the State of Washington and anticipates that its 7th generation prototype – Polaris – is expected to demonstrate net positive electricity to the grid. Commonwealth Fusion Systems also announced that its next prototype – SPARC – is expected to demonstrate net positive electricity with a grid-scale plant in Virginia to follow. That grid-scale plant is expected to come online in the early 2030s and generate about 400 megawatts of clean, carbon-free electricity — enough energy to power large industrial sites or about 150,000 homes.
The tech industry is also actively exploring and investing in fusion energy as a potential long-term solution to power data centers and other energy-intensive operations, such as artificial intelligence.
Fusion developments around the world
Widespread investment in fusion is driven by technological milestones and concrete partnerships and agreements. In 2023, Helion signed the first power purchase agreement (PPA) with Microsoft for a 50 MW fusion power plant – the first fusion PPA in the world – as well as a deal with Nucor to use a 500 MW plant to decarbonize the industrial sector.
The UK Government and other leading regulatory bodies like the U.S. Nuclear Regulatory Commission are developing frameworks to streamline regulation for fusion energy. For instance, the UK Government is pursuing a streamlined review and approval process for fusion plants. In the U.S., the Nuclear Regulatory Commission is developing a rule to regulate fusion under existing radioactive materials frameworks for the materials fusion machines use and produce, a change cemented in the U.S. by the ADVANCE Act of 2024. This included the Fusion Energy Act: legislation that codifies the permanent separation of fusion energy regulations from nuclear fission (e.g., designating a “fusion machine” as distinct from fission energy and regulation – recognizing significant differences between fusion energy and nuclear fission).
The commercial and regulatory developments in fusion align with significant technical advancements across the public and private sector, ensuring that fusion can continue to make progress towards its breakeven goals. In addition to the NIF announcements, in 2022, JET tokamak achieved the first-ever sustained, high-confinement plasma using the same wall materials and fuel mix that the ITER facility, an international nuclear fusion research project in France, will use. Participating members in ITER include China, India, Japan, Russia, the EU, and the U.S. On the commercial side, a number of companies have announced significant developments as well. The ultimate goal – practically unlimited safe and clean power – is a massive carrot for investors, especially those looking to capitalize on the shift to green energy.
Key takeaway for fusion
Investment in fusion is accelerating, and technological advancements have opened up the prospects of greater investments from venture capital and other, more mainstream, funding sources. To accelerate the commercialization of fusion, private industry and governments must work together. From a safety, regulatory, and risk perspective, the U.S. and the UK are prepared, which will streamline implementation in the future. However, governments must engage the private sector and facilitate – rather than impede – innovation, particularly by speeding up approval timelines and establishing regulatory frameworks.